Many business owners are focused on revenue/sales growth; however, savvy business owners are less concerned with revenue/sales growth and more concerned with their growth in profit. Some owners find out the hard way that you can sell yourself right out of business-it’s really the profit growth that leads to cash that counts.
An example of this is one of our clients that doubled the revenues in his business every year for three years 08, 09 and 10. Last year, 2011, his revenue/sales growth was flat.
We knew he needed to integrate and stabilize the massive growth he’d had over the previous three years and focus on refining the processes and systems in the business to improve efficiency. Though revenues were flat in 2011, he improved the profitability of the business a whopping 4300% and set aside cash to fund the next stage of business growth. How can you improve the profitability of your business today?